Housing Association Guide Part 1 - Appendix2Assessing Financial Viability
Contents
1.01This Appendix - describes the criteria that the DSD will use to measure an Association’s financial viability. This is necessary in order to assess the Association’s capacity:
a. To raise private loans to mixed finance and wholly privately funded housing schemes; and
b. To cover development period risks, irrespective of the method of funding, that put at risk not only the Association’s reserves but publicly funded property assets.
2.00 Withdrawal of Existing Quarterly Financial Returns 2.01HAC 13/97 – required the submission of quarterly financial returns. This quarterly financial return is being withdrawn. A new electronic financial return which can be more simply and easily completed has been introduced.
3.00 Overview of the new Quarterly Return3.01The New Quarterly Financial Return – consists of one Microsoft Excel workbook containing four worksheets (See Annex A for details). Associations are required to complete all the cells that are highlighted in yellow. This consists of inputting the Association’s income and expenditure statement and balance sheet.
3.02Financial Ratios – will be automatically generated by the workbook. There will be no benchmarks for these ratios which Associations have to achieve. The variations and trends in the ratios will be monitored. When financial difficulties are indicated further investigation will be undertaken by DSD to assess the financial viability of the Association.
4.00 Submission of Returns4.01Returns have to be completed – by all developing Associations listed in the relevant published Social Housing Development Programme.
4.02All submissions – have to be submitted electronically, using the Excel template provided, within six weeks of the quarter end to which they relate. Send all returns to:
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